Satluj Jal Vidyut Nigam (SJVN) IPO Review

The company is a hydroelectric power generation company, a 75:25 unlisted joint venture between the Government of India (GOI) and the Government of Himachal Pradesh (GOHP). Currently, the company is engaged in designing, planning, developing, examining, organizing, executing, operating, as well as maintaining hydroelectric power projects.

The expected EPS for current year is around Rs.2.5 and the Book value is at Rs.16.The stock is cheaper compared to its peers, but the issue price could have been priced lower. But still this is a good issue to apply for long term. Fundamentally good stock to buy & hold for long term and not for listing gains.

Its show that people can still discern between junk and decent offerings. With a decent low double digit multiple and good dividend yield SJVN it makes sense for retail investors who get a 5% discount to subscribe to it. It certainly makes 10 times more sense than subscribing to the absolute junk that is being offering in the primary market